EIA projects lower global oil demand for 2026, potentially capping price rises from Hormuz disruptions

The U.S. Energy Information Administration published its June Short-Term Energy Outlook (STEO), reducing its expectation for global oil demand in 2026. Global oil consumption is currently 1 million fewer barrels per day on average than last year, driven by high fuel prices, reduced fuel availability, and government initiatives curbing consumption, especially in Asia. This reduced demand could limit crude oil price increases resulting from near-term disruptions in oil flow through the Strait of Hormuz.